Alibaba has acquired a 50 percent stake in an office building in Singapore for S$1.68 billion (about CNY 8.4 billion), according to a Singapore Exchange announcement, making it Alibaba's largest overseas real estate deal to date.
A consortium led by Perennial Land Group will sell a 50 percent stake in AXA Tower to Alibaba's Singapore subsidiary, with final completion expected around June this year.
Along with the sale, the consortium will also transfer 50 percent of the outstanding shareholder loan to Alibaba's Singapore subsidiary but did not disclose the size of the loan.
Located in the Central Business District of Singapore, AXA Tower is a landmark 50-story Grade A office tower comprising a commercial podium with a total GFA of approximately 95,600 square meters at an average price of approximately 88,000 yuan.
The building's anchor tenants include Alibaba, AXA Insurance, BOC Aviation, Red Hat Software, Lazada, of which Ali is the anchor tenant, and Lazada, a Southeast Asian e-commerce platform controlled by Ali that has invested up to $4 billion.
The building is undergoing an industrial capital increase project, which includes strengthening commercial operations, adding a two-story medical suite podium of approximately 3,000 square meters, refurbishing the office lobby and drop-off point, and is expected to be completed gradually in 2021.
Perennial Land Group is an integrated real estate and healthcare company listed on the Main Board of the Singapore Exchange Securities Trading Limited, investing in large-scale integrated property development projects with a portfolio of over 6 million square meters of gross floor area in China, Singapore, Malaysia, Indonesia, Myanmar, Sri Lanka, and Ghana.
